One day Bank of America admits its paperwork is screwed up and cancels all foreclosures in 28 states. The next day it cancels them in the rest of the 57 states. And the day after that, President Obama says foreclosures should continue.
Somebody get us a friggin’ scorecard, because it’s getting tough to tell who’s on which side of this fiasco.
We’d like to say CNN.com has the latest details, but this story’s moving so fast that it’s tough to know what the latest details might be.
Pressure is mounting on U.S. banks to halt more foreclosures amid widespread allegations that loan servicers failed to verify legal documents in what could be hundreds of thousands of cases.
Members of Congress from California wrote to the heads of the Justice Department, the Federal Reserve, and the Comptroller of the Currency on Tuesday, requesting that they investigate the foreclosure processes of banks under their purview for “possible violations of law or regulations.”
In Texas, the Attorney General’s office sent “suspension notices” to 30 loan servicers in the state, asking them to halt foreclosures until they have completed a review of their procedures. The Attorney General in Massachusetts also urged financial institutions in the state to put a hold on all foreclosures.
The moves come after Ally Financial, JPMorgan and Bank of America all announced plans last week to freeze foreclosures in the 23 U.S. states where they must be approved by the courts.
Foreclosures continue in the remaining 27 states, including California and Texas, where they are not subject to judicial review. Two other major financial institutions, Wells Fargo and Citigroup, have yet to halt any foreclosures.
Our advice? If you can’t make your house payment, do what Barney Frank did – take in a renter who can run a gay prostitution ring out of your basement. Your cut might just be big enough to make your monthly payment.
Source: CNN.com
